Discussion in 'Tracker mortgages - other than redress issues' started by Annemarie123, 7 Jun 2018.
I've only seen this now. I could have joined you.
I have it in an email, thanks.
Is it because of the current tracker issue and other associated banking messes, that the likes of BoI have offered this new deal to people like me who had signed up to the older, less favorable deal? It's the only reasoning I can see behind their decision
Couldn't afford your tastes in red wine and kobe beef!
Do I need to contact branch or actual mortgage center? This is unreal news.
Is anyone aware of whether you lose the BOI’s tracker rate (+1%) if you subsequently have to rent out your principle primary residence? We are keen to trade up, and avail of the BOI’s offer to maintain our tracker plus 1%, but we know that we may need to move overseas temporarily some time in the future for work. Would we then lose the rate? I thought I saw reference to this in the thread above but now can’t find it. Thanks!
With some 5 year fixed rates at 2.6%, the 1% extra on a tracker mover doesn't necessarily make the best sense anymore, so I'd now be shopping around for what the best net cost is and I suspect there's very little between a tracker mover combined with additional funding and some of the fixed rates out there for the entire amount.
As for the direct question, I don't think anyone here has had a tracker taken away for renting out the property - at the end of the day the bank is still making a profit and won't want to lose the business.
By all means, do the maths. But if BoI gives 3% cash back on the extra bit borrowed and 3% interest rate, it will probably be better for 5 years at least. That is an effective rate of 2.4% on the extra bit if kept for 5 years.
But I wouldn't be hugely worried at this stage about possibly losing a tracker mover product in a few years. After a few years, the tracker will have declined in value as you reduce the capital and as market rates fall in the direction of tracker rates.
If this is the plan, would you not stay where you are and trade up after you come back? You might be happier renting out a house you intend to move from anyway instead of renting out your home.
We have been wondering that ourselves. The issue is that our jobs require us to work offshore for a few years and then return for a few years and then go away again so we are going to have to rent out the house at some point, whether now or later. We are also quite keen on looking at a house that has a granny flat or some part we can keep for ourselves to use when we visit or if one of us does some commuting.
That’s comforting about being unlikely to lose the rate, thanks Peemac.
Separate names with a comma.